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Buy Deepak Nitrite Ltd; target of Rs 295: CD Equisearch

CD Equisearch is bullish on Deepak Nitrite Ltd has recommended buy rating on the stock with a target price of Rs 295 in its research report dated May 31, 2018.

September 18, 2018 / 05:08 PM IST
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CD Equisearch's research report on Deepak Nitrite Ltd

Sorted into basic chemicals, fine & speciality chemicals (FSC) and performance products, DNL’s product portfolio comprises organic, inorganic and fine chemicals - for use in detergents, colorants, paper, agro chemicals, rubber etc.Sluggish overall volume growth (5%) failed to scupper business growth for overall revenues surged by 19.4% in Q4 - markedly improved from 6.1% in Q1- and operating margin rose by some 30 bps. Striking increases in both interest (34.1%) and depreciation expenses (14.3%) scarcely put brakes on PBT - which rose by a stunning 46.5%.


Yet backward integration of Roha unit would boost capacity utilization of most propitious fine & specialty chemicals business. Wherefore margins could scarcely remain subdued. We recommend buying the stock with revised target of Rs 295 (previous target: Rs 251) based on 20x FY20 earnings.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jun 11, 2018 05:09 pm

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